Maryland Consumer Protection: Your Rights in the Mortgage Industry

Maryland consumer protection laws are designed to ensure that borrowers are treated fairly in the mortgage industry. Understanding your rights can empower you to make informed decisions and protect yourself from deceptive practices. This article outlines key rights and protections available to Maryland consumers when dealing with mortgages.

1. Right to Disclosed Information
In Maryland, lenders are required to provide clear and detailed information regarding the terms of your mortgage. This includes the interest rate, closing costs, loan terms, and any potential fees. Consumers have the right to receive this information in writing before finalizing their loan agreement, allowing you to compare offers and avoid unexpected costs.

2. Right to Fair Treatment
Maryland law prohibits discrimination in lending practices. Under the Fair Housing Act and the Equal Credit Opportunity Act, lenders cannot deny a loan based on race, color, national origin, sex, marital status, religion, age, or the fact that you receive public assistance. If you believe you’ve been a victim of discriminatory lending practices, you can file a complaint with the Maryland State Commission on Human Relations.

3. Right to Request a Loan Estimate
Prior to your loan closing, you can request a Loan Estimate form from your lender. This document outlines the projected monthly payments, total closing costs, and any estimated taxes and insurance premiums. This right ensures you have a clear understanding of your financial commitment before you move forward.

4. Right to Privacy
Your personal and financial information is protected under Maryland’s consumer privacy laws. Lenders must keep your information confidential and cannot share it without your consent, except in specific circumstances outlined by law.

5. Right to Rescind
If you take out a mortgage on your primary residence, you have the right to rescind the loan within three business days of signing the closing documents. This means you can cancel the loan without penalty, giving you a chance to reconsider your decision if something feels off.

6. Right to File Complaints
If you encounter unethical practices, such as predatory lending or fraud, you have the right to file a complaint against your lender. The Maryland Attorney General’s Office provides resources for reporting and resolving such issues, ensuring that consumers have avenues for recourse.

7. Right to Access Financial Counseling
Maryland has numerous resources available for consumers seeking financial counseling. These services can help you understand your mortgage options and assess your financial situation, ensuring that you are making sound decisions regarding your mortgage.

8. Right to Foreclosure Assistance
In cases where financial difficulties arise, Maryland consumers have access to foreclosure prevention services. Homeowners can contact the Maryland Department of Housing and Community Development to seek assistance. The state offers programs that may help you avoid foreclosure, such as loan modification programs and financial assistance.

Staying informed about your rights in the mortgage industry is crucial for maximizing your protection as a consumer. Maryland has a robust system in place to safeguard borrowers against unfair practices. By understanding your rights, you can navigate the mortgage process more confidently and advocate for yourself effectively.